The term "agglomeration economies" refers to the economic benefits enjoyed by firms in the same industry that _____ in a region. For example, in the game and toy manufacturing industry in the United Kingdom, firms that locate near one another can more readily take advantage of increased potential for information sharing among firms that fosters greater technological innovation.
Which choice completes the text with the most logical and precise word or phrase?
Explanation
Context: Agglomeration economies benefit firms in the same industry that [blank] "in a region." Firms "locate near one another" to share information—gather together.
Answer: A) concentrate
Why? Locate near = gather. Concentrate = gather.
Traps:
- B) recur → different
- C) dissipate → opposite
- D) terminate → different